Gold lower on US support of IMF bullion sale

The price of gold dropped Monday after the US said it will support a limited sale of gold bullion by the International Monetary Fund in order to cover revenue shortfalls.

The IMF holds 3,217.3 tonnes of gold, less than only the United States and Germany, and the US will support the sale of around 401 tonnes.

Expected buyers include the central banks of China and India.

Shortly before the close of floor trade in New York April gold had fallen $7.30 to $940.50 per troy ounce.

April platinum was also lower, dropping $14.30 to $2,153.50 per troy ounce, but March silver added 5 cents to $18.09 per troy ounce.

Meanwhile among base metals, May copper was down 5 cents to $3.76 per pound in New York and three-month copper was $60 lower to $8,270 per tonne or $3.75 per pound in London after London Metal Exchange inventories added 7,625 tonnes on the session.